Why CFOs are evolving and using technology to transform finance

CFOs are leading finance into the digital age with AI and ML, transforming operations and talent. Ready to reform your finance function?

In brief

• A strategic technology approach is vital for CFOs to seamlessly adopt digital tools.
• Emerging technologies are crucial to transform finance operations.
• Merging accounting expertise with technology proficiency boosts workforce talent.

For Chief Financial Officers (CFOs), the nature of the job and how to do it are evolving. The need to fulfill regulatory compliance and reporting persists alongside the desire to turn data into strategic insights. The good news is that emerging technologies can add new efficiencies and intelligence behind the traditional and aspirational elements of finance functions — if the CFO can effectively orchestrate change. 

“The finance function is tasked with the precise management of an organization’s financial operations, ensuring stakeholders receive accurate and timely information that drives strategic objectives, decision-making and organizational development,” says Steven Krueger, EY Global Finance Technology Services Leader. “The adoption of cutting-edge technologies like robotic process automation (RPA), artificial intelligence (AI) and machine learning (ML) can significantly boost the efficiency and effectiveness of financial operations. Through the automation of routine tasks and the improvement of analytical insights, these technologies can facilitate the smooth execution of financial processes, all the while optimizing costs to maximize value for employees, shareholders, customers and the broader enterprise.” 

In 2023, CFOs ranked technology transformation as their most important priority over the next three years, ahead of a more traditional focus on risk and regulatory optimization, according to that year’s Global EY DNA of the CFO Report (pdf). Yet 72% of finance leaders said “traditional back-office behaviors and mindsets” were slowing the modernization of the function, and only 14% said they were making bold, holistic changes to transform the function for the future. So, how can CFOs pivot their thinking from traditional processes to modernization and digitization initiatives? 

Formulating a practical technology strategy  

CFOs need a story about how they are adopting technology and using it to push toward an inspiring future. Formulating this strategy is vital, pinpointing the precise moments and context for embedding technology within the finance function. It is imperative to vividly illustrate how digital tools can enhance finance operations, boost business performance, and integrate smoothly with the workforce. This strategy should be laser-focused on supplying stakeholders, from financial analysts to other C-suite executives, with enhanced and timely information — navigating the complexities of an ever-shifting landscape while adhering to regulatory compliance. Without a strategic foundation for technology, efforts to modernize finance, no matter how well-intentioned, may not achieve their goals. 

“In the rapidly evolving world of finance, having a well-defined technology strategy is not a luxury — it’s the cornerstone of success,” says Krueger. “By strategically incorporating the latest digital innovations, CFOs are not just making processes more efficient, they are unlocking extraordinary value. It’s about harnessing the power of technology to not just keep pace, but to set the pace — ensuring that every financial decision is informed, strategic and forward-thinking." 

Embracing game-changing technologies 

Once a clear technology strategy is in place, CFOs must focus on the effective integration of digital tools to ensure they not only fit with but also amplify the existing systems within the organization, maximizing the return on investment. Implementing cloud-based ERP platforms, for example, can enhance the finance function’s capability to perform vital financial tasks efficiently and provide a secure platform for rapid data retrieval. 

Moreover, the importance of hyper-automation technologies such as AI and ML is growing, transcending finance organizations traditional roles to bring additional value to businesses. These technologies go beyond automating mundane tasks by offering advanced data analysis and improving forecasting capabilities. Automation provides a fresh, unbiased perspective by linking aggregate business data with current market trends and other factors that affect business outcomes. Acting as a versatile resource, these technologies quickly deliver actionable insights. By directing these insights to the right places, CFOs can create a significant impact, transforming the way their organizations operate and compete. 

Integrating emerging technologies into finance starts with building capabilities and finding practical uses, such as employing AI to draft initial 10-K reports — a perfect task for the technology. This step not only begins the automation journey but also enriches finance professionals’ processing routines with valuable insights. The next phase involves broadening the scope of technology used to maintain momentum. Exploring creative ways to leverage emerging technologies to provide additional insights is important, all while ensuring a comfortable adoption pace as these technologies become more acquainted with business operations. 

Summary

CFOs are navigating a transformative era, where strategic technology adoption is key to modernizing finance operations. Digital tools like AI and RPA are crucial in enhancing efficiency and decision-making. Despite recognizing technology as a top priority, many finance leaders struggle to move beyond traditional mindsets. A well-defined tech strategy is essential for CFOs to lead their organizations toward innovation and value creation. Embracing automation and workforce upskilling, CFOs are poised to reimagine finance roles, ensuring their teams are equipped for the challenges of a rapidly evolving financial landscape.